Finance News

Calls for Client Money Protection to be Compulsory for All Letting Agents

Rose - November 25, 2015
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Calls for Client Money Protection to be Compulsory for All Letting Agents

Calls for Client Money Protection to be Compulsory for All Letting Agents

The Government has been urged to make Client Money Protection (CMP) compulsory for all letting agents. It is regarded as an important and easy reform to benefit the private rental sector.

SAFEagent has again called for mandatory CMP, asking the Government to include a proposed amendment presented by the Managing Director of the Association of Residential Letting Agents (ARLA), David Cox.

The amendment would be included in the Housing and Planning Bill, which is currently going through Parliament.

SAFEagent launched its campaign in 2011 and has more than 3,000 offices signed up. It is working to raise consumer awareness among landlords and tenants of the need to use an agent with CMP.

Chair of SAFEagent, John Midgley, says: “We welcome the positive action the Government is taking to deal with rogue landlords and agents. Mandatory membership of a redress scheme for all agents was a step in the right direction, but consumers get no recompense through those schemes if an agent misappropriates their money.

“Only by introducing a mandatory requirement for all agents to be included under a CMP scheme can the consumer be afforded that protection.

“It is great that the industry is now pulling together to protect consumers – something that the SAFEagent steering group has advocated since the start of its campaign.

“We hope to build on this goodwill for other consumer protection initiatives, which we are planning.”1

Midgley’s views have been sent to Brandon Lewis, the Housing Minister.

If you use a letting agent, remember to look out for whether they have CMP in place.

1 http://www.propertyindustryeye.com/calls-mount-for-ministers-to-make-client-money-protection-mandatory-for-agents/